Back Office Probed at Citi Mutual Fund Unit

A spokeswoman for the bank declined to elaborate on the memorandum, which was written by Thomas Jones, chairman and chief executive officer of Citigroup Global Investment Management. She declined to identify the subcontractor.

In the memo, Jones said the bank has briefed the Securities and Exchange Commission and New York Attorney General Eliot Spitzer on the matter. Jones said the bank learned of the problem while "reviewing documents requested by the SEC.''

Citigroup Asset Management is a large enterprise within the Citigroup empire. The division has 2,600 employees and $493 billion in assets under management. It sells mutual funds under three brand names: Salomon Brothers, Smith Barney and Citi.